FDA Dismissal Slams Pharma Stock
The FDA declined to approve the drugmaker's new antibiotic
The shares of Nabriva Therapeutics(NASDAQ:NBRV) are spiraling today, after the biopharmaceutical company's urinary tract infection (UTI) antibiotic drug, Contepo, was denied approval by the Food and Drug Administration (FDA). The FDA cited facility and manufacturing concerns for its decision. NRBV is down 16.6% at $2.49 today, set for its worst day since July 2018 -- much to the chagrin of recent option buyers.
The equitybottomed out at an all-time low of $1.12 on Dec. 26, but subsequently more than doubled atop support from its 40-day moving average. Today, however, Nabriva stock is set to end beneath that trendline for the first time since January.
A round of analysts downgrades or price-target cuts could push the stock even lower, too. Currently, NBRV holds six "buy" or better ratings, and only one "strong sell." Plus, its lofty consensus 12-month price target of $9.50 represents a whopping 279% premium to current levels.
Today's plunge likely has plenty of short sellers cheering, though NBRV is on the short-sale restricted list today. Short interestshot up nearly 66% in the last two reporting periods. The 68,000 shares sold short, however, only make up 2.5% of the stock's available float.